Don't lend your hand to raise no flag atop no ship of fools

Stocks dipped a little today, and gold and gold stocks were worse, on Fed minutes indicating no imminent QE3.

Sure, we could get a brutal correction this year in stocks, gold, or both. You could argue Bernanke needs a bad correction politically before he can fire up the printing presses again.

But keep your eye on the horizon. Long term, there's no way the $15 trillion (and counting) in debt can ever be paid back in sound money. Nobody can afford sound money -- not homedebtors, not the banks, and certainly not the federal government which wouldn't be able to make interest payments without slashing Social Security and Medicare.

Which group has more power, creditors or debtors? Creditors expect the value of the credit they have extended to retain its value. Debtors would like to see their speculative asset purchases retain, or even increase, in value.

Propaganda to the contrary, only one of these groups is going to come out (mostly) whole. Hot tip: it ain't the debtors.